1. Australia’s underinsurance problem Capstone PD days – March 2010

2. 2 Background on today’s presentation

3. 3 Agenda 2. Why have we as an industry been slow to address this issue 3. Possible solutions to make it easier to write risk 1. Australia’s underinsurance problem

4. 4 Australia’s underinsurance problem One in five families will be impacted by the death of a parent, a serious accident or illness that renders a parent unable to work The typical Australian family will lose half or more of their income following a serious illness, injury or the loss of one of parent as a result of underinsurance; Australia is currently $137 trillion underinsured 95% of families do not have adequate levels of insurance; and 85% of Australian have comprehensive car insurance compared to 30% with IP cover and 45% with death cover Underinsurance is expected to cost the federal government $1.3 billion over the next 10 years. Lifewise/Natsem Underinsurance report, 2 March 2010 www.lifewise.org.auwww.lifewise.org.au Credit Suisse Life Insurance Quarterly Monitor,12 August 2009

5. 5 Australia’s underinsurance problem Plan for Life, February 2010

6. 66 So why aren’t we writing more insurance? Reason 1: I don’t have the client base Reason 6: Its all too hard Reason 4: It’s too expensive Reason 2: It is not a core part of my business Reason 5: My clients are already covered Low insurance sales Reason 3: I offer it to my clients but they don’t see the need

7. 7 Reason 1: Don’t have the client base BT Adviser website (www.adviserwrap.com.au)www.adviserwrap.com.au Material Available:  CPD Points (generic knowledge)  Presentations and case studies  Press releases, advertising templates, checklists to use with clients  Marketing strategy template BT BDM’s also happy to work with member firms on business plans

8. 8 Reason 2: Not part of my core business Insurance is fast becoming other adviser’s core business Credit Suisse, Life Insurance Quarterly Monitor, 12 August 2009

9. 9 Reason 3 Client’s don’t see the need

10. 10 Reason 4: Its too expensive Example details: 40yo male accountant, non smoker in Victoria, $500,000 death, TPD (own occupation) and trauma insurance Product RangeCore Product ScoreMonthly PremiumCumulative Premium BT Life Protection Plan95$159.78$41,405 Zurich Wealth Protection97$167.36$44,143 Tower Protection Policy9495$170.21$42,102 Aviva Protection First92$173.88$43,089 ING Onecare91$175.54$43,814 Compare these costs to the cost of comprehensive car insurance

11. 11 Reason 4: My clients are already covered CoverAverage CoverNeeded Life$189,000$550,000 TPD$162,000$517,000 Credit Suisse, Life Insurance Quarterly Monitor, 12 August 2009

12. 12 Reason 5: Its all too hard

13. 13 Lifesaver tool

14. 14 Lifesaver tool

15. 15 Lifesaver tool

16. 16 Lifesaver tool

17. 17 Lifesaver tool

18. 18 Lifesaver tool